Comparison of Section 66 "Interpretation" between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....vision Mode Text & Scope Clause 66 of the Income Tax Bill, 2025 (Old Version) provides interpretive definitions for terms used "In sections 26 to 66" of the Bill, dealing with Profits and gains of business or profession. It contains a catalogue of defined expressions - including "agreement", "banking company", "commission or brokerage", "commodity derivative", "commodities transaction tax", "fees for technical services", "housing finance company", "Indian Institute of Technology", "Keyman insurance policy", "limited liability partnership", "long-term finance", "micro enterprise", "mineral oil", "moneys payable", "National Housing Bank", "non-scheduled bank", "paid", "permanent establishment", "plant", "predecessor entity", "primary agricu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....es out exceptions, it does so within particular definitions. For example, "speculative transaction" excludes (a) specified derivative transactions; (b) certain hedging contracts in the course of manufacturing/merchandising; (c) contracts by dealers/investors in stocks/shares for hedging; and (d) forward-market or stock-exchange member transactions in jobbing/arbitrage. These subclauses act as express carve-outs to prevent ordinary commercial hedging or certain exchange activities from being treated as speculative for tax purposes. No general provisos outside definition-specific qualifiers are present. Other conditional definitions (e.g., "long-term finance" requiring repayment terms of not less than five years) set clear thresholds. Illust....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...." to be notified and to fulfil conditions "as prescribed"). Interaction with rules and notifications is anticipated but the Bill often leaves specifics to delegated law (prescription/notification). Differences between Section 66 of the Income-tax Act, 2025 and Clause 66 of the Income Tax Bill, 2025 (Old Version) * Scope language: Section 66 applies "For the purposes of Part D of this Chapter" (i.e., Chapter IV-D), whereas Clause 66 (Old Version) states "In sections 26 to 66," - a broader textual hook in the Bill version.  * Practical impact: potential difference in statutory application scope - the Act text narrows the interpretive provisions to Part D explicitly; the Bill text suggests definitions apply across sect....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lassified as such under the notification in this behalf by the Central Government under the Micro, Small and Medium Enterprises Development Act, 2006." * Practical impact: Act moves from direct cross-reference to specific statutory subsections to a reference to notification-based classification; this grants greater administrative flexibility and ties the definition to executive notifications rather than to fixed statutory clause numbers. * Terminology and numbering changes for derivative/speculative definitions: The Bill's "specified derivative transaction" definition (clause (37)) is structured as three conjunctive requirements (electronic on recognised exchanges; carried out by bank/mutual fund/other through intermediary; supporte....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....erm; stakeholders in commodity derivatives may need to seek alternative statutory anchors. * Placement and wording of "service" for section 26(2)(h): Both texts define "service" with an illustrative list. The list is substantially the same but the Act positions this at clause (29) and the Bill at (33). * Practical impact: principally drafting/numbering; substantively similar. * Minor reordering and rewording: Many items are present in both texts but with changed numbering, slightly different cross-references (e.g., references to Finance (No. 2) Act numbering), and occasional substitutions (e.g., "commodity derivative" v. "commodities transaction tax"). * Practical impact: requires careful cross-referencing in tax opinions and compli....